Most people would agree that their home is one of the most important investments they’ll ever make. They will often spend a significant amount of money furnishing and decorating it, as well as making sure it has everything they need to live comfortably. When disaster strikes, such as a fire or flood, homeowners are devastated to find out that their insurance company may not cover all the damages incurred to their property.
In fact, many policies have exclusions for water damage which means you’ll be left with nothing but a pile of rubble if your house was flooded during Hurricane Harvey or Irma. This article will help you understand what should happen if your insurance company refuses to pay for water damage.
Speak With an Attorney
If you’ve been dealing with an insurance company that is refusing to pay for water damage, the first thing you should do is speak with an attorney. As frustrating as it may be, insurers often refuse to pay out on a claim for water damage because they know most people won’t bother to fight back. An experienced lawyer will know the right steps to take in order to get the insurance company to pay up.
This is usually done when the company has been blatantly refusing to pay out claims or is acting in bad faith. A lawsuit can be an effective way to stand up to the company and demand that they follow through with their promise. Lawsuits can be expensive, however, so this is usually a last resort.
File a Complaint with the State Regulator
You should also file a complaint with your state’s department of insurance. This will help get the ball rolling on getting your claim processed. Every state has a department of insurance that oversees insurance companies and their claims. They will have advisors who are trained to deal with insurance companies, so you can be sure they will give you an objective and helpful opinion on what course of action to take next. This is one of the best ways to get your issue on the radar and to ensure that it is being handled correctly.
Additionally, if other people are having the same issue with their insurance company, it can help to create pressure to get the company to start paying out claims. Even though this method doesn’t typically result in getting your claim paid out, it does carry some weight when dealing with the insurance company. The threat of having their license revoked may be enough to get them to pay up, especially since most policies exclude flood damage anyways.
Keep Pristine Records
If you do end up in a lawsuit against your insurance company, one of the biggest factors is going to be how well you keep records. Every time you contact the insurer or speak with their agents, make sure to write down who you talked to and jot down what was discussed. Also, take note of when these conversations happened.
If your claim isn’t getting paid out because there was too much water damage, then it’s key that everyone knows exactly how wet the house got after the storm hit. This way if it goes to court and they deny your claim, for this reason, you’ll be able to prove just how serious the damage was and how deep in trouble they were aware of your situation from day one.
In addition especially for flood damage claims, make sure to take pictures and videos of the damage as it progresses. This will help substantiate your claim and will show that the damage was not caused by anything else, such as neglect on your part.
Know Your Insurance Policy and Rights
Make sure you’re familiar with your insurance policy as it’s important to know your rights as an insurance policyholder. Know what is and isn’t covered and if there are any exclusions. Most importantly, know your rights as a consumer. This means you should have a good understanding of what the present value is on your home and how much your claims really should be worth. An insurance company cannot simply refuse to pay out on a claim without a reasonable explanation. If they are giving you the runaround, it’s time to get help.
Be Persistent
No matter what you do, don’t give up on getting your insurance company to pay for water damage. It can be a long and frustrating process but it’s important to stay diligent. Keep contacting them, speaking with advisors, and filing complaints until you either get a check in the mail or see them in court. Remember, you’re not alone in this fight and there are people who can help you every step of the way.
As frustrating as dealing with an insurance company may be after a disaster strikes, these tips will help ensure that every step is being taken to get you back on your feet. Remember to be persistent and to arm yourself with as much information as possible.
